Food delivery giant Zomato is in advanced discussions to acquire Paytm's movie ticketing and events business, as per a Bloomberg report, citing sources familiar with the matter.
The negotiations between One97 Communications Ltd., the parent company of Paytm, and the online food delivery giant Zomato are reportedly in advanced stages.
This strategic move aligns with Zomato's plan to expand its 'going out' offerings. The potential deal could value Paytm's vertical at approximately Rs 1,500 crore, according to an Economic Times report.
If finalised, this acquisition would mark Zomato's second-largest purchase, following its acquisition of quick commerce platform Blinkit (formerly Grofers) in 2021, which was an all-stock deal valued at Rs 4,447 crore, the report added.
Zomato's interest in Paytm’s events and movie ticketing business is a strategic fit, complementing its broader aim to capture consumer demand across various categories, including food, grocery, and entertainment.
The report added that regulatory measures have compelled Paytm to establish new partnerships with other lenders. No conclusive decision has been reached yet, as per the Bloomberg report.
While Paytm does not separately disclose figures for its movie and events ticketing business, it recorded annual sales of 17.4 billion rupees ($208 million) in the fiscal year ending March 2024 for its broader marketing services segment, which includes this business along with credit card marketing and gift vouchers.
A successful sale would enable Paytm to concentrate on travel, deals, and cashback—sectors crucial for expanding its merchant base and boosting overall sales.
With inputs from Bloomberg.
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